Some analysts speculate that today’s stock sell is Musk’s answer to some of the high interest debt he’s paying on his $44 billion Twitter deal. Trading at $156.80 after hours on Wednesday, Tesla stock is down 60.8% from January, and is on track for their worst full-year performance. Investors say Musk’s involvement with the social media platform is detrimental to Tesla, arguments they back by pointing to the company’s stock price. The sell comes as Tesla investors raise concerns over Musk’s involvement with Twitter, which the executive recently took over after a controversial, and expensive, purchase. In April, he sold off $8.5 billion worth of Tesla stock, and in August Musk offloaded another $7 billion worth.Īfter Wednesday’s share sell, Musk owns roughly $66 billion worth of Tesla stock. Musk hasn’t provided a reason publicly for the share sell this time around, nor if he is done for the day. Musk’s latest stock dump follows the nearly $4 billion worth of shares he sold last month. The sale is worth about $3.5 billion, according to a regulatory filing. The combination of slumping stock, a distracted CEO and concerns about the Tesla brand being tarnished are cooking up the potential for investor activism, Ives noted.Tesla CEO Elon Musk sold more than 20 million shares of the company stock between Monday and Wednesday. automakers are piling into electric cars. "Right now they are popping champagne in the 313 area code because it's a benefit for GM, Mercedes and others in this EV arms race," Ives added, referring to the area code for Detroit, where U.S. "Ultimately, you're alienating 50% of the population for someone who is selling products to the masses," he said. That could pose a real risk for Tesla sales, especially as rival automakers are rolling out their own EVs and trying to grab part of Tesla's market share, Ives pointed out. They want to be proud as hell to drive them - not embarrassed.- Gary Black December 14, 2022 Customers don’t want their cars to be controversial. He will realize soon (if not already) that his polarizing political views are hurting customer perceptions of $TSLA EVs. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, should be prosecuted, although he did not specify is a brllliant business leader. And Musk himself has courted controversy and condemnation with some of his recent tweets, such as a viral post on Sunday that simultaneously made fun of pronoun usage while indicating that he believes Dr. Researchers have tracked a massive spike in hate speech since Musk's takeover. Musk's dedication to "free speech" prompted changes at the company such as reinstating formerly banned accounts, like those belonging to former President Donald Trump and far-right Republican lawmaker Marjorie Taylor Greene. Other issues are emerging with Musk's ownership of Twitter that extend beyond investor anxieties over the CEO's stock sales. "That has been a massive overhang on Tesla's stock." Tarnished brand? "One of investors' bigger concerns is that Musk is using Tesla as an ATM machine," Ives said. But he also needed to tap his greatest source of wealth to fund the company - Tesla stock. But clinching that deal wasn't cheap, with Ives estimating that Musk's $44 billion purchase price for Twitter represented a $20 billion overpayment.ĭue to the steep price for Twitter, Musk has had to slash costs dramatically at the social media network, cutting more than half the company's staff. Twitter presented a path for Musk to achieve that goal, as he had been especially critical of the social-media company's content moderation standards. What Tesla BOD should do, do nothing? Elon will find his own successor under BOD independent supervision - KoGuan Leo December 14, 2022 Tesla needs and deserves to have working full time CEO Elon abandoned Tesla and Tesla has no working CEO
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